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3 Rational of the combination (1) To help to face the two critical financing questions for SME: access to credit (e.g. => ERDF guarantee (collateral)) and cost of credit (=> interest rate subsidies) To achieve a sound mix of repayable financial instruments with grants or interest rate / guarantee fee subsidies according to different project types and final recipients => e.g. higher aid intensity levels for more innovative projects in sectors of national / regional interest with higher difficulties to access to traditional financing To ensure a smooth transition towards an innovative financing approach by combining repayable financial instruments with grants

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4 Rational of the combination (2) To ensure a substantial leverage effect on the use of public resources by stimulating growth share of financial intermediaries but responding to SME financing needs in given economic circumstances by stimulating growth share of financial intermediaries Create a more transparent and accessible system of available support => better understanding by financial intermediaries and SMEs of loans, guarantees and equity compared to grants

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5 Conclusions (1) High leverage reaching a large number of final recipients through a good blending of private and public ressources and adequate risk sharing between SMEs, financial intermediaries and public sector (Portugal) 1. Clear distinction between scope and types of investment and receipients resp. for grants and financial instruments – 2. financial instruments not subsidised but on market prices – 3. clear trend of downsizing of grants (Spain) Financial instruments are placed in the context of the objectives of the operational programme and the regions stategy of economic and social development with clear definition of key features to combine (Italy)

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6 Conclusions (2) Market demonstrates that the combination has found its first applications (in Andalusia 40% of all final receipients of financial instruments also received grant) The rationale for the combination is to seek an optimal balance to meet regional policy objectives by supporting SMEs, the use of limited grant resources and achieving the maximum leverage effect. => Consideration should hereby given to different type of projects, priority sectors, type of final recipients, market features Future exhange of good practice examples would be appreciated

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7 Conclusions (3) Need for technical assistance in the future was raised The meetings of the JEREMIE Networking Platform are important for the dissemination of knowledge in general but in particular for the sharing of good practice examples and a valid contact point for all relevant partners involved in the implementation The combination allows to combine a static approach (investment oriented) for grants with a dynamic approach (cash flow oriented) for financial instruments. The need remains for a future regulatory environment with clear guidelines also regarding the combination of repayable financial instruments and grants in order to accelerate its implemention